Effects of Taxation: Investments by Individuals

By J. Keith Butters; Lynn L. Bollinger | Go to book overview

CHAPTER VII
Marketable Common Stock: I

THIS series of chapters on the willingness of investors to hold specific investment assets will be introduced by two chapters dealing with marketable common stock. In this chapter the general attitude of investors toward common stock and the ways in which taxes may cause investors to increase or decrease their holdings of common stock will be considered; in the next chapter an attempt will be made to assess the quantitative impact of the general effects discussed in this chapter.

Marketable common stocks cover a wide range of securities and are held both by investors interested mainly in their income yield and by investors interested mainly in capital appreciation. Among assets held for their income yield, marketable common stocks in general represent relatively high return, high risk securities. While there is much overlapping of individual securities, common stocks on the whole are to the "left" of most preferred stocks, corporate bonds, government bonds (federal, state, or local) and, of course, cash. While some "blue chip" common stocks, such as that of the American Telephone & Telegraph Company, have highly stable income returns and are generally evaluated by the market as being less risky than many low-grade bonds and preferred stocks, the above ranking is fairly clean-cut as it applies to broad classes of securities.

Among assets held in the hope of capital appreciation, in contrast, common stocks are more nearly in the center of the range. Preferred stocks, corporate bonds, and government bonds typically offer little or no opportunity for capital appreciation. On the other hand, family businesses, new issues of unseasoned companies, new ventures, and various other types of investments, such as oil and mining ventures and some real

-180-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Effects of Taxation: Investments by Individuals
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 534

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.